Model clause

Supply Chain Emissions Scorecard

Maria's Scorecard

A pro forma scorecard to be incorporated into commercial agreements as a schedule, allowing supply-chain sustainability to be viewed through the lens of risk to business continuity

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Why use this?

This could be implemented within both public and private sector deal-making.

Companies may use the scorecard to impose sustainability requirements expected of the company with whom they are contracting - incentivising compliance with internationally accredited metrics such as Science Based Targets. (For example, a revolving credit facility could have pricing mechanisms linked to sustainability performance against an earlier baseline.)

By including it in commercial negotiations, the scorecard positions sustainability performance as a collaborative effort between the parties, while increasing the transparency of action taken by companies through a robust reporting framework.

The scorecard will give the contracting parties a chance to precisely quantify where they are meeting sustainability requirements, where they are falling short, and steps being taken to improve their performance.

The metrics and audit standards measured by this scorecard may change by company, sector, industry and geographical location and so the scorecard needs to be easily modifiable, without affecting its intended overall accessibility.

The scorecard should be easily readable and adaptable and is not intended to be an onerous drafting burden.

How it promotes a net zero future

What gets measured gets managed. The scorecard can help reduce GHG emissions as companies realise the numerous benefits to investing in renewable technologies and energy sources, developing economies of scale and building strong relationships with clients and suppliers alike.

The parties may agree to provide the information in the scorecard to other stakeholders, such as end-use customers and ESG investors who are increasingly factoring GHG emissions into their decision making.

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The clauses on this website (and published in our Climate Contract Playbook) have been prepared in good faith on a pro bono basis and are free to download and use. The clauses have been drafted and edited by a variety of lawyers and, as such, the approaches to drafting may not conform to any particular drafting norms. We acknowledge this as a consequence of the collaborative drafting process.

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While care has been taken in the drafting of these clauses, neither The Chancery Lane Project nor any of its contributors owe a duty of care to any party in relation to their preparation and do not accept any liability for any errors or omissions, nor for any loss incurred by any person relying on or using these clauses or any other person. Users should use their own professional judgement in the application of these clauses to any particular circumstance or jurisdiction or seek independent legal advice.

At present, all the clauses are based on the laws of England and Wales. We encourage the conversion of these precedent clauses for use in other jurisdictions.

The clause

CLAUSE (Company specific – indicative drafting)

“The pricing mechanisms referred to in clauses [ ] will take effect on the [Effective Date], being the date by which the [main party] receives the Scorecard described in Schedule [ ]”

“The provisions of the [GHG Emissions Agreement] referred to in clause [ ] will take effect on the [Effective Date], being the date by which the [main party] receives the Scorecard duly completed by the [other party] in accordance with Schedule [ ]”

“Supplier must [within [14] days of entry into this agreement/annually/on written request of the Customer] provide the Customer with a completed Scorecard set out in Schedule [ ].”

SCHEDULE [ ]
[EMISSIONS SCORECARD]

Target:

Absolute emissions contraction

  • Base year
  • Target year
  • Base year emissions, disaggregated by scope 

i.e. reduce annual CO2e emissions to x% by 20xx from 20xx levels

Scope 1, 2 and 3 Emissions means the three classifications of emissions in the GHG Protocol.

  • Scope 1 Emissions means all direct emissions from the activities of Company or under its control, including on site fuel combustion and emissions from chemical production in owned or controlled process equipment, refrigerant losses and company vehicles.
  • Scope 2 Emissions means all indirect emissions from electricity purchased and used by the Company where the emissions occur at sources owned or controlled by another company.
  • Scope 3 Emissions means all indirect emissions, other than Scope 2 Emissions, that are a consequence of the activities of the Company, but occur from sources not owned or controlled by the Company, including business travel, procurement, waste and water.
Background Information
Company Name:
Date:

Number of Employees:

 

Contact Name: Title:
Contact Email: Contact Phone:
 

Environmental Policy and Targets

Do you have a sustainability/environmental/climate policy statement? Yes No
If yes, please provide link or attach document:

 

Do you publish a Corporate Social Responsibility (CSR)/Sustainability report? Yes No
If yes, please provide link or attach document:

 

Do you monitor and track energy consumption at your facility(ies)? Yes No
If yes, please describe:

 

Do you have goals or targets to reduce greenhouse gas emissions and/or energy use? Yes No
If yes, what is/are the target(s):

 

Have you received additional requests from stakeholders to disclose environmental information? Yes No
If yes, describe the types of information requested and specify the type of stakeholder that has requested the information:

 

Do you report greenhouse gas emissions and/or energy use either publicly or to another customer? Yes No
If yes, describe where:

 

Greenhouse Gas Emissions
Do you calculate your Scope 1 and 2 greenhouse gas emissions? Yes No
If yes, what is the most recent year that data is available?

 

If yes, please provide: Total Scope 1 Emissions: [ ] Metric Tons CO2e
Total Location-Based Scope 2 Emissions: Metric Tons CO2e
Total Market-Based Scope 2 Emissions: Metric Tons CO2e

 

Please provide a description of your major Scope 1 and Scope 2 emissions sources: [you can use the source (Conversion Factors) below to measure Scopes 1 and 2 emissions.]

 

Do you seek third party verification/assurance of your Scope 1 and 2 emissions? Yes No  

If yes, please attach your most recent verification statement.

 

Do you calculate your Scope 3 greenhouse gas emissions? Yes No
If yes, what is the most recent year that data is available?

 

For each Scope 3 category, state if it is relevant to your business and provide emissions, if available.
Scope 3 Category Relevant? Quantified Sources Emissions
Purchased good and services

 

(Y/N) [ ] Metric Tons CO2e
Capital goods

 

Fuel-and-energy-related activities

 

Upstream transportation and distribution

 

Waste generated in operations

 

Business travel

 

Employee commuting

 

Upstream leased assets

 

Investments

 

Downstream transportation and distribution

 

Processing of sold products

 

Use of sold products

 

End of life treatment of sold products

 

Downstream leased assets

 

Franchises

 

Do you seek third party verification/assurance of your Scope 3 emissions? Yes No  

If yes, please attach your most recent verification statement.

 

Energy and Greenhouse Gas Emissions Reduction Are you able to compare the greenhouse gas emissions reported above with emissions in a previous year? Yes No
If yes, please describe if Scope 1, 2, and 3 emissions have increased or decreased compared to prior years:

 

Do you have a program and/or procedures to reduce energy use and greenhouse gas emissions? Yes No
If yes, please describe:

 

Do you produce or purchase renewable energy? Yes No
If yes, please describe:

 

Do you have strategies to reduce Scope 3 greenhouse gas emissions? Yes No
If yes, please describe:

 

Do you engage with your suppliers around environmental issues and performance? Yes No
If yes, please describe:

 

Do you collect environmental data from your suppliers? Yes No
If yes, please describe the type(s) of data collected and how it is used internally:

 

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